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POSTED BY ON April 5, 2012 5:11 pm COMMENTS (5)
Dear All
Based on the inputs received from this Forum, I chose to go with Aviva for Term Policy. On the face of it, it seems a good policy and is much more attractive than other online Term Policies.
Initially, Aviva gave a quotation of only about Rs. 6350 for coverage of Rs 50 Lakhs for me (age 36 years).
As I am slightly Diabetic (it is varying from normal to slightly diabetic in regular checkups), the Under-Writer team of Aviva has increased the premium amount to Rs. 14485 (which is more than 225% of initial Quote). This is done after medical examination by Aviva.
When I spoke to underwriter team, they informed, even for slight diabetic, their policy is to charge this much and there will be no negotiations or discounts on the premium. I was even ready for reducing the policy duration, still they could not reduce the final quotation.
My Doubts or Questions are:
1. When Aviva has a policy to charge more than double to a Slightly diabetic person, they should have informed me well before taking my initial payment. Why don’t they do it?
2. Is claims of Aviva that they are providing insurance at very low cost is only for advertisement purpose? Underwriter team is charging high amount once they receive application and initial payment!
3. When I declared that I am diabetic to the Aviva Team well before getting their Quote, Why did they offer initial Quote of so less (only 6350) and why the Underwriter team increase the same abruptly (more than 225%)? (Also this is done after receipt of my initial payment)
4. When they are revising their quotation to more than 225%, why cant they allow me to take back my money and withdraw the policy. Where as other insurance providers like Aegon Religare are allowing for withdrawal of policy without charging anything extra at any point of time.
5. If my experience with Aviva is like this before taking policy, how can i trust them for future?
6. Btw, can somebody inform me the Claim Settlement Ratio of Aviva Term Policy.
Going by this Bad experience, I am not sure whether Aviva is able to give fair settlement to its customers in future.
Can somebody clear my doubts., Thanks
KK Babu
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You are a chemical engineer??? I thought with all your knowledge and the top commentator on the forum you were a financial advisor !!!
Dear Ram Prakash, I hope, my chem. Engr. back ground is not a problem to you & all others. 🙂 🙂
FYI please – Dear Ramesh is also not from financial background & he is a Doctor. 🙂 🙂
Thanks
Ashal
You are a chemical engineer. I thought with all your knowledge and the top commentator on the forum you were a financial advisor !!!
Dear KKBabu, things can be looked differently from different angles. Regarding your online application & declaration that you are a diabetic, the system (Price Quotation system of Aviva) did not throw revised quotation that’s your primary concern. Well without going through medical test, how an Insurer can decide that the person is having diabetes slightly, borderline, medium, high, not suitable for insurance……
That’s why in your case, the regular prem. was received first & then at the time of underwriting, the same was increased. Regarding your statement, that Aviva people not allowed you to withdraw your proposal, I feel there is some communication gap.
Regarding the increased prem. in a sense, I’m happy for you that Insurer is ready to cover your life even after knowing the higher risk to your life due to diabetes.
FYI – I also purchased a Term Cover of Aviva I-life & due to my job profile (I’m a chem. engineer) & the related high risks, my prem. was increased around 3.5 times from the original quote. I accept the same happily & paid the difference & now I’m covered with out any worry in my mind that Insurer may deny the claim if my death happens inside my work place due to any related risk.
Thanks
Ashal
This can not happen .. did Aviva tell you that you cant withdraw and you will not get any premiums back ? I doubt it
As per IRDA norms , you can get back your premiums except medical costs and except some part of premium which will be for few days till what time you were covered + Stamp duty . But that does not make a big part .. maximum 5-10% should be cut , not more than that ..
Manish